How the Department of Justice is Cracking Down on Tariff Evasion
The U.S. government is increasing its focus on customs enforcement, with the Department of Justice (DOJ) leading a more aggressive campaign against tariff evasion.
On December 3, 2025, a US Department of Justice Criminal Division official revealed notable improvements in how the Trade Fraud Task Force identifies leads and prosecutes cases related to alleged tariff evasion.
The official highlighted that additional cases are underway, in addition to the three recently announced corporate enforcement actions.
For importers and other businesses involved in international trade, this means heightened scrutiny and a greater risk of federal investigation.
Understanding the current enforcement situation is critical if you find yourself under suspicion for customs-related violations.
Recent government actions signal a significant shift in how these cases are approached, prioritizing criminal prosecution and inter-agency collaboration to combat what it perceives as widespread trade fraud.
Key Takeaways
- The Department of Justice (DOJ) is intensifying its efforts to fight tariff evasion by creating a new Cross-Agency Trade Fraud Task Force, employing advanced data analytics, and more actively enforcing criminal laws like the False Claims Act (FCA) and statutes against false statements.
- These new measures are aimed at importers who falsify the origin or value of goods to avoid paying duties.
- At the American Conference Institute's 42nd Annual Conference on FCPA and Global Anti-Corruption in Washington, DC, a DOJ official announced new procedures for the Task Force, led by DOJ and Homeland Security, updating its methods for developing leads, investigations, and prosecuting criminal tariff evasion.
- Senior Counsel of the Criminal Division highlighted that the Task Force intends to utilize the DOJ Health Care Fraud Unit's data-driven strategy to identify leads that suggest possible criminal breaches of US tariff laws.
- Possible criminal charges for tariff evasion include 18 USC § 542 (entry of goods through false statements) and 18 USC § 545 (smuggling goods into the U.S.), both carrying severe penalties
A New Era of Tariff Enforcement
While legal challenges to recent U.S. tariff policies continue in the courts, the federal government is not waiting for a resolution to act. The DOJ has made it clear that enforcing existing customs laws is a top priority.
This is demonstrated through two key developments: the restructuring of a specialized unit and the formation of a new task force.
First, the DOJ's Market Integrity and Major Frauds (MIMF) Unit, part of the Criminal Division's Fraud Section, was deployed to target tariff evasion schemes specifically.
To reflect its expanded focus, this unit was renamed the Market, Government, and Consumer Fraud (MGC) Unit. This change signifies the DOJ's intent to treat customs fraud with the same seriousness as other major financial crimes.
The MGC Unit is tasked with investigating importers and other parties suspected of illegally avoiding tariffs by misrepresenting the value, origin, or classification of goods.
Second, the DOJ has partnered with the Department of Homeland Security (DHS) to establish the Cross-Agency Trade Fraud Task Force.
This initiative combines the resources of the DOJ's Civil and Criminal Divisions with those of U.S. Customs and Border Protection (CBP) and Homeland Security Investigations (HSI).
This collaboration is designed to close enforcement gaps, improve the detection of fraudulent activities through data analytics, and pursue parallel civil and criminal actions against suspected offenders.
Potential Federal Criminal Charges
An investigation by the MGC Unit or the new Task Force can lead to serious federal criminal charges. The government has several statutes at its disposal to prosecute individuals and companies for tariff evasion.
Examples of such charges may include:
- 18 U.S.C. § 541 - Entry of Goods Falsely Classified: This law makes it a crime to knowingly import goods into the U.S. by means of a false statement, whether related to the goods' value, quantity, or origin, without a reasonable belief that the statement is true.
- 18 U.S.C. § 542 - Entry of Goods by Means of False Statements: This statute criminalizes the act of importing merchandise by using any false invoice, declaration, or practice. It targets the act of deceit itself in the importation process.
- 18 U.S.C. § 545 - Smuggling Goods into the United States: This broad statute covers the fraudulent or knowing importation of goods contrary to law. It can be applied in cases where goods are undeclared or imported using deceptive means to avoid duties.
- 18 U.S.C. § 371 - Conspiracy to Defraud the United States: If two or more people conspire to commit an offense against the U.S. or to defraud it, they can be charged under this statute. This is often used in complex tariff evasion schemes involving multiple parties.
A conviction for any of these offenses can result in substantial fines, imprisonment, and forfeiture of the goods involved. The government can also pursue civil penalties under laws like the False Claims Act, which allows for treble damages and significant per-claim penalties.
The Challenge of Compliance
Navigating U.S. customs law is complex. Tariff regulations, classification codes, and country-of-origin rules can be difficult to interpret and are subject to frequent changes.
Ongoing trade disputes and national security concerns often lead to sudden shifts in U.S. tariff policy, sometimes creating new obligations for importers with little notice.
This volatility can make full compliance a challenge even for well-intentioned businesses.
A simple mistake in classifying goods or declaring their value could be misinterpreted by federal agents as an intentional act of evasion.
With the government now actively using data analytics to spot irregularities, the margin for error is smaller than ever.
Why You Need a Federal Criminal Defense Attorney
If you or your business is contacted by federal agents from the DOJ, DHS, or CBP regarding your import practices, it is essential to seek legal counsel immediately. The government's heightened focus on tariff evasion means that investigations are likely to be thorough and aggressive.
A federal criminal defense attorney with experience in customs fraud and white-collar defense can provide critical assistance. An attorney can:
- Communicate with federal investigators on your behalf.
- Analyze the specifics of your case and explain the potential charges you face.
- Examine the legality of the investigation and the evidence collected.
- Help you navigate the complexities of customs regulations to build a strong defense.
- Negotiate with prosecutors to potentially reduce charges or penalties.
How We Can Help You
Our team, specializing in white collar, international trade, and national security, is prepared to help companies evaluate and reassess risks related to customs duties, tariffs, and compliance and enforcement, especially in light of the DOJ's public statements.
We assist in exploring, implementing, and defending lawful methods to minimize tariff exposure while adhering to applicable laws, avoiding common pitfalls and misunderstandings.
Additionally, we assist clients in responding to investigations by US agencies that dispute importers' claims regarding customs duties and tariffs. For further details, reach out to our federal criminal defense law firm at Eisner Gorin LLP.
Related Content: